Communications Minister Denis Naughten is seeking to relax a postal price cap currently in place until June 2019.

He said: "In recognition of the very difficult financial situation facing An Post, legislation to provide for the repeal of Section 30 of the Postal Services Act, 2011 has been approved by Government today.

"An Post is facing an acceleration of the trend in volume decline which has been apparent for some years. This coupled with the impact of the 2.5% pay increase this year has led to deterioration in company financials.

"In order to ensure that An Post continues to provide postal deliveries every day to each address, the company will be given greater pricing freedom for mail products.

"No price increase will take place until the legislation is enacted and until I make a commencement order in the New Year", he added.